-- Disciplined execution drives stronger-than-expected results in a dynamic
market.
-- Net income guidance improved to $4.75 billion to $5.00 billion.
-- Order book trends reinforce 2026 as the bottom of the ag equipment cycle.
MOLINE, Ill., Aug. 20, 2026 /CNW/ -- Deere & Company (NYSE: DE) reported net income of $1.379 billion for the third quarter ended August 2, 2026, or $5.10 per share, compared with net income of $1.289 billion, or $4.75 per share, for the quarter ended July 27, 2025. For the first nine months of the year, net income attributable to Deere & Company was $3.808 billion, or $14.06 per share, compared with $3.962 billion, or $14.57 per share, for the same period last year.
Worldwide net sales and revenues increased 5 percent, to $12.608 billion, for the third quarter of 2026 and rose 7 percent, to $35.589 billion, for nine months. Net sales were $10.999 billion for the quarter and $30.779 billion for nine months, compared with $10.357 billion and $28.338 billion last year, respectively.
"Deere delivered a strong quarter, reflecting disciplined execution by our teams and continued resilience across our portfolio," said John C. May, chairman and chief executive officer. "Our performance underscores the strength of our business, supported by stable U.S. market conditions, our ability to manage softer conditions in Brazil and Europe, and our commitment to helping customers succeed."
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2026 is forecasted to be in a range of $4.75 billion to $5.00 billion.
"As we look ahead, we continue to believe 2026 will mark the bottom of the current ag equipment cycle," May said. "Across our business, early order program trends, improving used-equipment inventories, and increasing customer adoption of our advanced technologies give us confidence that Deere is well positioned for long-term value creation."
Deere & Third Quarter Year to Date Company $ in 2026 2025 % Change 2026 2025 % Change millions, except per share amounts Net sales and revenues $12,608 $12,018 5 % $35,589 $33,290 7 % Net income $ 1,379 $ 1,289 7 % $ 3,808 $ 3,962 -4 % Fully diluted EPS $ 5.10 $ 4.75 $ 14.06 $ 14.57
Results for the prior periods presented were affected by special items. See Note 2 of the financial statements for further details. The company recorded tariff recoveries in the third quarter and first nine months of 2026 of $110 million and $382 million, respectively. The tariff impact for each segment is primarily included in the "Production Costs" category below.
Production & Precision Agriculture Third Quarter $ in millions 2026 2025 % Change Net sales $ 3,998 $ 4,273 -6 % Operating profit $ 527 $ 580 -9 % Operating margin 13.2 % 13.6 %
Production & Precision Agriculture sales decreased for the quarter as a result of lower shipment volumes, partially offset by favorable price realization and foreign currency translation. Operating profit decreased primarily due to lower shipment volumes / sales mix and higher production costs, partially offset by favorable price realization and the effects of foreign currency exchange.
Small Agriculture & Turf Third Quarter $ in millions 2026 2025 % Change Net sales $ 3,383 $ 3,025 12 % Operating profit $ 622 $ 485 28 % Operating margin 18.4 % 16.0 %
Small Agriculture & Turf sales increased for the quarter as a result of higher shipment volumes and favorable price realization. Operating profit increased primarily due to higher shipment volumes / sales mix and favorable price realization, partially offset by higher production costs.
Construction & Forestry Third Quarter $ in millions 2026 2025 % Change Net sales $ 3,618 $3,059 18 % Operating profit $ 436 $ 237 84 % Operating margin 12.1 % 7.7 %
Construction & Forestry sales increased for the quarter primarily as a result of higher shipment volumes and favorable price realization. Operating profit increased primarily due to favorable price realization, partially offset by higher SA&G and R&D costs.
Financial Services Third Quarter $ in millions 2026 2025 % Change Net income $219 $205 7 %
Financial Services net income increased primarily due to favorable financing spreads, partially offset by the impact of a lower average portfolio.
Industry Outlook for Fiscal 2026
Agriculture & Turf
U.S. & Canada:
Large Ag Down 15 to 20%
Small Ag & Turf Flat to up 5%
Europe Flat
South America (Tractors & Combines) Down 15 to 20%
Asia Flat
Construction & Forestry
U.S. & Canada:
Construction Equipment Up 5 to 10%
Compact Construction Equipment Up 5%
Global Forestry Down 10%
Global Roadbuilding Up 10%
Deere Segment Outlook for Fiscal 2026
Currency Price
$ in millions Net Sales Translation Realization
Production & Precision Ag Down 10% +2.5 % +1.0%
Small Ag & Turf Up 15% +0.5 % +1.5%
Construction & Forestry Up 20% +1.5 % +3.0%
Financial Services Net Income $870
FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in the sections entitled "Company Outlook & Summary," "Industry Outlook for Fiscal 2026," "Deere Segment Outlook for Fiscal 2026," and "Condensed Notes to Interim Consolidated Financial Statements" relating to future events, expectations, and trends constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of the company's operations generally, while others could more heavily affect a particular line of business.
Forward-looking statements are based on information currently available to the company and the company's current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, the company expressly disclaims any obligation to update or revise its forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:
-- the agricultural business cycle, which can be unpredictable and is
affected by factors such as farm income, international trade, world grain
stocks, crop yields, available farm acres, soil conditions, prices for
commodities and livestock, input costs including the availability and
price of fertilizer, government farm programs, and availability of
transport for crops
-- construction and forestry activity, which is affected by factors such as
housing starts and supply, real estate and housing prices, levels of
residential and non-residential construction, public and private
infrastructure development, and government policies and regulations
-- macroeconomic conditions, including unemployment, inflation, interest
rate volatility, energy price increases resulting from geopolitical
conflicts, changes in consumer sentiment and practices due to slower
economic growth or a recession, and regional or global liquidity
constraints
-- the uncertainty of government policies and actions with respect to the
global trade environment, including increased and contested tariffs
announced by the U.S. government and retaliatory trade regulations
-- political, economic, and social instability in the geographies in which
the company operates
-- worldwide demand for food and different forms of renewable energy
impacting the price of farm commodities and the resulting impacts on the
demand for the company's equipment
-- rationalization, restructuring, relocation, expansion, and/or
reconfiguration of manufacturing and warehouse facilities
-- accurately forecasting customer demand for products and services, and
adequately managing inventory
-- selling products domestically or internationally, managing increased
costs of production, absorbing or passing on increased expenses, as well
as accurately predicting financial results and industry trends
-- availability and price of raw materials, components, and whole goods
-- delays or disruptions in the company's supply chain, including those
arising from geopolitical conflicts
-- changes in climate patterns, unfavorable weather events, and natural
disasters
-- suppliers' and manufacturers' business practices and compliance with
applicable laws such as human rights, safety, environmental, and fair
wages
-- higher interest rates and currency fluctuations which could adversely
affect the U.S. dollar, customer confidence, access to capital, and
demand for the company's products and solutions
-- attracting, developing, engaging, and retaining qualified employees
-- adapting in highly competitive markets, including understanding and
meeting customers' changing expectations for products and solutions,
including delivery and utilization of precision technology
-- realizing the anticipated benefits of the company's Smart Industrial
Operating Model, achieving the company's Leap Ambitions, and executing
the company's related business strategies in production systems,
precision technologies, and aftermarket support
-- the company's dealer network's development and implementation of
successful sales plans, management of new and used inventory,
distribution of the company's products, and support and service for the
company's precision technology solutions
-- achieving anticipated benefits of acquisitions and joint ventures,
including challenges with successfully integrating operations and
internal control processes
-- negative claims or publicity that damage the company's reputation or
brand
-- the impact of workforce reductions on company culture, employee retention
and morale, and institutional knowledge
-- labor relations and contracts, including work stoppages and other
disruptions
-- security breaches, cybersecurity attacks, technology failures, and other
disruptions to the company's information technology infrastructure and
products
-- leveraging artificial intelligence and machine learning within the
company's business processes
-- changes to existing laws and regulations, including the implementation of
new, more stringent laws, as well as compliance with a variety of U.S.,
foreign, and international laws, regulations, and policies relating to,
but not limited to the following: advertising, anti-bribery and
anti-corruption, anti-money laundering, antitrust, consumer finance,
cybersecurity, data privacy, encryption, environment (including climate
change and engine emissions), farming, foreign exchange controls and cash
repatriation restrictions, foreign ownership and investment, health and
safety, human rights, import / export and trade, labor and employment,
product liability, right-to-repair, tariffs, tax, telematics, and
telecommunications
-- governmental and other actions designed to address climate change in
connection with a transition to a lower-carbon economy
-- warranty claims, post-sales repairs or recalls, product liability
litigation, and regulatory investigations because of the deficient
operation of the company's products
-- investigations, claims, lawsuits, or other legal proceedings
-- loss of or challenges to intellectual property rights
Further information concerning the company or its businesses, including factors that could materially affect the company's financial results, is included in the company's other filings with the SEC (including, but not limited to, the factors discussed in Item 1A. "Risk Factors" of the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company cannot anticipate or that are not described herein because the company does not currently perceive them to be material.
DEERE & COMPANYTHIRD QUARTER 2026 PRESS RELEASE(In millions of
dollars) Unaudited
Three Months Ended Nine Months Ended
August July 27 % August 2 July 27 %
2
2026 2025 Change 2026 2025 Change
Net sales and
revenues:
Production &
Precision Ag
net sales $ 3,998 $ 4,273 -6 $ 11,664 $12,571 -7
Small Ag &
Turf net
sales 3,383 3,025 +12 9,036 7,767 +16
Construction &
Forestry net
sales 3,618 3,059 +18 10,079 8,000 +26
Financial
Services
revenues 1,371 1,418 -3 4,121 4,273 -4
Other revenues 238 243 -2 689 679 +1
Total net
sales and
revenues $12,608 $12,018 +5 $ 35,589 $33,290 +7
Operating
profit: *
Production &
Precision Ag $ 527 $ 580 -9 $ 1,372 $ 2,066 -34
Small Ag &
Turf 622 485 +28 1,538 1,182 +30
Construction &
Forestry 436 237 +84 1,134 681 +67
Financial
Services 271 266 +2 823 740 +11
Total
operating
profit 1,856 1,568 +18 4,867 4,669 +4
Reconciling
items ** 52 60 -13 184 198 -7
Income taxes (529) (339) +56 (1,243) (905) +37
Net income
attributable
to Deere &
Company $ 1,379 $ 1,289 +7 $ 3,808 $ 3,962 -4
* Operating profit is income from continuing operations
before corporate expenses, certain external interest
expenses, certain foreign exchange gains and losses,
and income taxes. Operating profit of Financial Services
includes the effect of interest expense and foreign
exchange gains and losses.
** Reconciling items are primarily corporate expenses,
certain interest income and expenses, certain foreign
exchange gains and losses, pension and postretirement
benefit costs excluding the service cost component,
and net income attributable to noncontrolling interests.
DEERE & COMPANYSTATEMENTS OF CONSOLIDATED INCOMEFor the Three
and Nine Months Ended August 2, 2026
and July 27, 2025(In millions of dollars and shares except per
share
amounts) Unaudited
Three Months Ended Nine Months Ended
2026 2025 2026 2025
Net Sales and
Revenues
Net sales $ 10,999 $ 10,357 $ 30,779 $ 28,338
Finance and
interest income 1,353 1,426 4,011 4,233
Other income 256 235 799 719
Total 12,608 12,018 35,589 33,290
Costs and
Expenses
Cost of sales 7,939 7,570 22,486 20,215
Research and
development
expenses 567 556 1,704 1,631
Selling,
administrative
and general
expenses 1,220 1,217 3,401 3,387
Interest expense 710 794 2,141 2,408
Other operating
expenses 290 281 846 817
Total 10,726 10,418 30,578 28,458
Income of
Consolidated
Group before
Income Taxes 1,882 1,600 5,011 4,832
Provision for
income taxes 529 339 1,243 905
Income of
Consolidated
Group 1,353 1,261 3,768 3,927
Equity in income
of
unconsolidated
affiliates 24 10 34 11
Net Income 1,377 1,271 3,802 3,938
Less: Net loss
attributable to
noncontrolling
interests (2) (18) (6) (24)
Net Income
Attributable to
Deere & Company $ 1,379 $ 1,289 $ 3,808 $ 3,962
Per Share Data
Basic $ 5.11 $ 4.76 $ 14.10 $ 14.61
Diluted 5.10 4.75 14.06 14.57
Dividends
declared 1.62 1.62 4.86 4.86
Dividends paid 1.62 1.62 4.86 4.71
Average Shares
Outstanding
Basic 269.8 270.7 270.1 271.1
Diluted 270.7 271.4 270.8 271.9
See Condensed Notes to Interim Consolidated Financial
Statements.
DEERE & COMPANYCONDENSED CONSOLIDATED BALANCE SHEETS(In millions of
dollars) Unaudited
August 2 November 2 July 27
2026 2025 2025
Assets
Cash and cash equivalents $ 8,928 $ 8,276 $ 8,580
Marketable securities 1,350 1,411 1,407
Trade accounts and notes
receivable -- net 7,723 5,317 6,103
Financing receivables -- net 42,860 44,575 43,930
Financing receivables
securitized -- net 6,316 6,831 7,948
Other receivables 2,466 2,403 2,826
Equipment on operating leases
-- net 7,400 7,600 7,512
Inventories 7,811 7,406 7,713
Property and equipment -- net 8,006 8,079 7,713
Goodwill 4,466 4,188 4,209
Other intangible assets -- net 940 892 926
Retirement benefits 3,541 3,273 3,182
Deferred income taxes 2,343 2,284 2,209
Other assets 3,457 3,461 3,559
Total Assets $ 107,607 $ 105,996 $ 107,817
Liabilities and Stockholders'
Equity
Liabilities
Short-term borrowings $ 17,115 $ 13,796 $ 14,607
Short-term securitization
borrowings 6,095 6,596 7,610
Accounts payable and accrued
expenses 13,668 13,909 13,582
Deferred income taxes 411 434 489
Long-term borrowings 40,626 43,544 44,429
Retirement benefits and other
liabilities 1,651 1,710 1,836
Total liabilities 79,566 79,989 82,553
Redeemable noncontrolling
interest 44 51 84
Stockholders' Equity
Total Deere & Company
stockholders' equity 27,990 25,950 25,175
Noncontrolling interests 7 6 5
Total stockholders' equity 27,997 25,956 25,180
Total Liabilities and
Stockholders' Equity $ 107,607 $ 105,996 $ 107,817
See Condensed Notes to Interim Consolidated Financial
Statements.
DEERE & COMPANYSTATEMENTS OF CONSOLIDATED CASH FLOWSFor the Nine
Months Ended August 2, 2026 and July
27, 2025(In millions of dollars) Unaudited
2026 2025
Cash Flows from Operating Activities
Net income $ 3,802 $ 3,938
Adjustments to reconcile net income to net cash
provided
by operating activities:
Provision for credit losses 205 258
Depreciation and amortization 1,787 1,668
Impairments and other adjustments 29
Share-based compensation expense 116 104
Credit for deferred income taxes (61) (102)
Changes in assets and liabilities:
Receivables related to sales (1,252) (494)
Inventories (443) (526)
Accounts payable and accrued expenses (266) (717)
Accrued income taxes payable/receivable (119) (147)
Retirement benefits (367) (813)
Other (152) 266
Net cash provided by operating activities 3,250 3,464
Cash Flows from Investing Activities
Collections of receivables (excluding
receivables
related to sales) 19,922 19,712
Proceeds from maturities and sales of marketable
securities 389 359
Proceeds from sales of equipment on operating
leases 1,479 1,408
Cost of receivables acquired (excluding
receivables
related to sales) (19,139) (18,962)
Acquisitions of businesses, net of cash acquired (455) (89)
Purchases of marketable securities (361) (598)
Purchases of property and equipment (716) (852)
Cost of equipment on operating leases acquired (1,933) (2,009)
Collections of receivables from unconsolidated
affiliates 197 334
Collateral on derivatives -- net (63) 127
Other (145) (231)
Net cash used for investing activities (825) (801)
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings
(original
maturities three months or less) 3,205 (2,060)
Proceeds from borrowings issued (original
maturities
greater than three months) 5,373 10,707
Payments of borrowings (original maturities
greater
than three months) (8,338) (7,743)
Repurchases of common stock (697) (1,136)
Dividends paid (1,316) (1,282)
Other (55) (43)
Net cash used for financing activities (1,828) (1,557)
Effect of Exchange Rate Changes on Cash, Cash
Equivalents,
and Restricted Cash 20 108
Net Increase in Cash, Cash Equivalents, and
Restricted
Cash 617 1,214
Cash, Cash Equivalents, and Restricted Cash at
Beginning
of Period 8,533 7,633
Cash, Cash Equivalents, and Restricted Cash at
End
of Period $ 9,150 $ 8,847
See Condensed Notes to Interim Consolidated Financial
Statements.
DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial
Statements
(In millions of dollars) Unaudited
(1) Acquisitions
In 2026, the company completed several acquisitions
to advance the capabilities of its existing technology
offerings, including the February acquisition of Tenna
LLC (Tenna), a U.S. construction technology company
that provides mixed-fleet equipment operations and
asset tracking solutions, for a purchase price of
$439 million, net of cash acquired. Tenna was assigned
to the CF segment. The company also acquired other
small-scale businesses assigned to the PPA, SAT, and
CF segments for a combined purchase price consideration
of $16 million, net of cash acquired. Most of the
purchase price for these acquisitions was allocated
to goodwill and other intangible assets.
In 2025, the company acquired businesses to advance
the capabilities of the company's existing technology
offerings, providing customers with a more comprehensive
set of tools to generate and use data to make decisions
that improve profitability, efficiency, and sustainability.
The combined cost of these acquisitions was $89 million,
net of cash acquired. The businesses were assigned
to the PPA and CF segments. Most of the purchase price
for these acquisitions was allocated to goodwill and
other intangible assets.
(2) Special Items
Impairment
------------------------------------------------------------
In the third quarter of 2025, the company recorded
a non-cash charge of $61 million pretax ($49 million
after-tax), primarily related to the trade name and
customer relationship assets of external overseas
battery operations. Of this amount, $53 million was
recorded in "Selling, administrative and general expenses"
and $8 million in "Cost of sales." The charge is presented
in "Impairments and other adjustments" in the statements
of consolidated cash flows. The impairment resulted
from slowing external demand for batteries, which
indicated that it is probable future cash flows would
not cover the carrying value of the assets.
Discrete Tax Items
------------------------------------------------------------
In the first quarter of 2025, the company recorded
favorable net discrete tax items primarily due to
tax benefits of $110 million related to the realization
of foreign net operating losses from the consolidation
of certain subsidiaries and $53 million from an adjustment
to an uncertain tax position of a foreign subsidiary.
Banco John Deere S.A.
------------------------------------------------------------
In 2024, the company entered into an agreement with
a Brazilian bank, Banco Bradesco S.A. (Bradesco),
for Bradesco to invest and become a 50% owner of the
company's wholly-owned subsidiary in Brazil, Banco
John Deere S.A. (BJD). BJD finances retail and wholesale
loans for agricultural, construction, and forestry
equipment. The transaction is intended to reduce the
company's incremental risk as it continues to grow
in the Brazilian market.
The BJD business was reclassified as held for sale
in 2024. In January 2025, the valuation allowance
on assets held for sale decreased, resulting in a
pretax and after-tax gain (reversal of previous losses)
of $32 million recorded in "Selling, administrative
and general expenses" in the nine months ended July
27, 2025. The valuation allowance changes are presented
in "Impairments and other adjustments" in the statements
of consolidated cash flows.
The company deconsolidated BJD upon completion of
the transaction in February 2025. The company accounts
for its investment in BJD using the equity method
of accounting and results of its operations are reported
in "Equity in income (loss) of unconsolidated affiliates"
within the Financial Services segment. The company
reports investments in unconsolidated affiliates and
receivables from unconsolidated affiliates in "Other
assets" and "Other receivables," respectively.
Summary of 2025 Special Items
The following table summarizes the operating profit impact of the special items recorded in millions of dollars for the three months and nine months ended July 27, 2025.
Three Months Nine Months
PPA SAT CF FS Total PPA SAT CF FS Total
2025 Expense
(benefit):
Impairment $28 $17 $16 $ 61 $28 $17 $16 $ 61
BJD
measurement $(32) (32)
Total expense
(benefit) $28 $17 $16 $ 61 $28 $17 $16 $(32) $ 29
(3) The consolidated financial statements represent the
consolidation of all the company's subsidiaries. The
supplemental consolidating data in Note 4 to the financial
statements is presented for informational purposes.
Equipment operations represent the enterprise without
Financial Services. Equipment operations include the
company's Production & Precision Agriculture operations,
Small Agriculture & Turf operations, Construction
& Forestry operations, and other corporate assets,
liabilities, revenues, and expenses not reflected
within Financial Services. Transactions between the
equipment operations and Financial Services have been
eliminated to arrive at the consolidated financial
statements.
DEERE & COMPANY(4) SUPPLEMENTAL CONSOLIDATING DATASTATEMENTS OF INCOMEFor the Three Months
Ended August 2, 2026 and July
27, 2025(In millions of dollars) Unaudited
EQUIPMENT FINANCIAL
OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED
2026 2025 2026 2025 2026 2025 2026 2025
Net Sales and
Revenues
Net sales $10,999 $10,357 $10,999 $10,357
Finance and
interest income 149 133 $1,383 $1,433 $(179) $(140) 1,353 1,426 (1)
Other income 191 190 122 111 (57) (66) 256 235 (2, 3, 4)
Total 11,339 10,680 1,505 1,544 (236) (206) 12,608 12,018
Costs and
Expenses
Cost of sales 7,950 7,578 (11) (8) 7,939 7,570 (4)
Research and
development
expenses 567 556 567 556
Selling,
administrative
and general
expenses 988 999 234 220 (2) (2) 1,220 1,217 (4)
Interest expense 99 102 661 720 (50) (28) 710 794 (1)
Interest
compensation to
Financial
Services 129 112 (129) (112) (1)
Other operating
expenses (23) (8) 357 345 (44) (56) 290 281 (3, 4, 5)
Total 9,710 9,339 1,252 1,285 (236) (206) 10,726 10,418
Income before
Income Taxes 1,629 1,341 253 259 1,882 1,600
Provision for
income taxes 472 274 57 65 529 339
Income after
Income Taxes 1,157 1,067 196 194 1,353 1,261
Equity in income
(loss) of
unconsolidated
affiliates 1 (1) 23 11 24 10
Net Income 1,158 1,066 219 205 1,377 1,271
Less: Net loss
attributable to
noncontrolling
interests (2) (18) (2) (18)
Net Income
Attributable to
Deere & Company $ 1,160 $ 1,084 $ 219 $ 205 $ 1,379 $ 1,289
(1) Elimination of intercompany interest income and expense.
(2) Elimination of equipment operations' margin from inventory
transferred to equipment on operating leases.
(3) Elimination of income and expenses between equipment
operations and Financial Services related to intercompany
guarantees of investments in certain international
markets.
(4) Elimination of intercompany service revenues and fees.
(5) Elimination of Financial Services' lease depreciation
expense related to inventory transferred to equipment
on operating leases.
DEERE & COMPANYSUPPLEMENTAL CONSOLIDATING DATA (Continued)STATEMENTS OF INCOMEFor the Nine
Months Ended August 2, 2026 and July
27, 2025(In millions of dollars) Unaudited
EQUIPMENT FINANCIAL
OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED
2026 2025 2026 2025 2026 2025 2026 2025
Net Sales and
Revenues
Net sales $30,779 $28,338 $30,779 $28,338
Finance and
interest income 379 351 $4,093 $4,268 $(461) $(386) 4,011 4,233 (1)
Other income 616 580 408 350 (225) (211) 799 719 (2, 3, 4)
Total 31,774 29,269 4,501 4,618 (686) (597) 35,589 33,290
Costs and
Expenses
Cost of sales 22,518 20,239 (32) (24) 22,486 20,215 (4)
Research and
development
expenses 1,704 1,631 1,704 1,631
Selling,
administrative
and general
expenses 2,775 2,761 632 632 (6) (6) 3,401 3,387 (4)
Interest expense 294 282 1,973 2,206 (126) (80) 2,141 2,408 (1)
Interest
compensation to
Financial
Services 334 306 (334) (306) (1)
Other operating
expenses (59) (47) 1,093 1,045 (188) (181) 846 817 (3, 4, 5)
Total 27,566 25,172 3,698 3,883 (686) (597) 30,578 28,458
Income before
Income Taxes 4,208 4,097 803 735 5,011 4,832
Provision for
income taxes 1,059 752 184 153 1,243 905
Income after
Income Taxes 3,149 3,345 619 582 3,768 3,927
Equity in income
(loss) of
unconsolidated
affiliates (4) 34 15 34 11
Net Income 3,149 3,341 653 597 3,802 3,938
Less: Net loss
attributable to
noncontrolling
interests (6) (24) (6) (24)
Net Income
Attributable to
Deere & Company $ 3,155 $ 3,365 $ 653 $ 597 $ 3,808 $ 3,962
(1) Elimination of intercompany interest income and expense.
(2) Elimination of equipment operations' margin from inventory
transferred to equipment on operating leases.
(3) Elimination of income and expenses between equipment
operations and Financial Services related to intercompany
guarantees of investments in certain international
markets.
(4) Elimination of intercompany service revenues and fees.
(5) Elimination of Financial Services' lease depreciation
expense related to inventory transferred to equipment
on operating leases.
DEERE & COMPANYSUPPLEMENTAL CONSOLIDATING DATA (Continued)CONDENSED BALANCE SHEETS(In millions of dollars) Unaudited
EQUIPMENT FINANCIAL
OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED
Aug 2 Nov 2 Jul 27 Aug 2 Nov 2 Jul 27 Aug 2 Nov 2 Jul 27 Aug 2 Nov 2 Jul 27
2026 2025 2025 2026 2025 2025 2026 2025 2025 2026 2025 2025
Assets
Cash and cash
equivalents $ 6,607 $ 6,340 $ 6,641 $ 2,321 $ 1,936 $ 1,939 $ 8,928 $ 8,276 $ 8,580
Marketable
securities 155 217 240 1,195 1,194 1,167 1,350 1,411 1,407
Receivables from
Financial
Services 5,364 4,649 3,649 $(5,364) $(4,649) $(3,649) (6)
Trade accounts
and notes
receivable --
net 1,472 1,316 1,335 8,442 5,900 7,064 (2,191) (1,899) (2,296) 7,723 5,317 6,103 (7)
Financing
receivables --
net 106 88 84 42,754 44,487 43,846 42,860 44,575 43,930
Financing
receivables
securitized --
net 2 1 1 6,314 6,830 7,947 6,316 6,831 7,948
Other
receivables 1,926 1,809 2,013 594 658 867 (54) (64) (54) 2,466 2,403 2,826 (8)
Equipment on
operating
leases -- net 7,400 7,600 7,512 7,400 7,600 7,512
Inventories 7,811 7,406 7,713 7,811 7,406 7,713
Property and
equipment --
net 7,975 8,047 7,680 31 32 33 8,006 8,079 7,713
Goodwill 4,466 4,188 4,209 4,466 4,188 4,209
Other intangible
assets -- net 940 892 926 940 892 926
Retirement
benefits 3,439 3,181 3,092 104 94 92 (2) (2) (2) 3,541 3,273 3,182
Deferred income
taxes 2,487 2,507 2,471 47 46 44 (191) (269) (306) 2,343 2,284 2,209 (9)
Other assets 2,371 2,218 2,357 1,098 1,244 1,211 (12) (1) (9) 3,457 3,461 3,559
Total Assets $ 45,121 $ 42,859 $ 42,411 $70,300 $70,021 $71,722 $(7,814) $(6,884) $(6,316) $107,607 $105,996 $107,817
Liabilities and
Stockholders'
Equity
Liabilities
Short-term
borrowings $ 417 $ 414 $ 461 $16,698 $13,382 $14,146 $ 17,115 $ 13,796 $ 14,607
Short-term
securitization
borrowings 1 1 6,094 6,595 7,610 6,095 6,596 7,610
Payables to
equipment
operations 5,364 4,649 3,649 $(5,364) $(4,649) $(3,649) (6)
Accounts payable
and accrued
expenses 12,796 12,757 12,795 3,129 3,116 3,146 (2,257) (1,964) (2,359) 13,668 13,909 13,582 (7, 8)
Deferred income
taxes 326 347 393 276 356 402 (191) (269) (306) 411 434 489 (9)
Long-term
borrowings 8,907 8,756 8,789 31,719 34,788 35,640 40,626 43,544 44,429
Retirement
benefits and
other
liabilities 1,586 1,646 1,767 67 66 71 (2) (2) (2) 1,651 1,710 1,836
Total
liabilities 24,033 23,921 24,205 63,347 62,952 64,664 (7,814) (6,884) (6,316) 79,566 79,989 82,553
Redeemable
noncontrolling
interest 44 51 84 44 51 84
Stockholders'
Equity
Total Deere &
Company
stockholders'
equity 27,990 25,950 25,175 6,953 7,069 7,058 (6,953) (7,069) (7,058) 27,990 25,950 25,175 (10)
Noncontrolling
interests 7 6 5 7 6 5
Financial
Services'
equity (6,953) (7,069) (7,058) 6,953 7,069 7,058 (10)
Adjusted total
stockholders'
equity 21,044 18,887 18,122 6,953 7,069 7,058 27,997 25,956 25,180
Total
Liabilities and
Stockholders'
Equity $ 45,121 $ 42,859 $ 42,411 $70,300 $70,021 $71,722 $(7,814) $(6,884) $(6,316) $107,607 $105,996 $107,817
(6) Elimination of receivables / payables between equipment
operations and Financial Services.
(7) Primarily reclassification of sales incentive accruals
on receivables sold to Financial Services.
(8) Reclassification of other receivables / payables.
(9) Reclassification of deferred tax assets / liabilities
in the same taxing jurisdictions.
(10) Elimination of Financial Services' equity.
DEERE & COMPANYSUPPLEMENTAL CONSOLIDATING DATA (Continued)STATEMENTS OF CASH FLOWSFor the Nine Months Ended August 2, 2026
and July
27, 2025(In millions of dollars) Unaudited
EQUIPMENT FINANCIAL
OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED
2026 2025 2026 2025 2026 2025 2026 2025
Cash Flows from
Operating Activities
Net income $ 3,149 $ 3,341 $ 653 $ 597 $ 3,802 $ 3,938
Adjustments to
reconcile net income to
net cash provided
by
operating activities:
Provision (credit) for
credit losses (1) 18 206 240 205 258
Depreciation and
amortization 1,042 965 821 804 $ (76) $ (101) 1,787 1,668 (11)
Impairments and other
adjustments 61 (32) 29
Share-based compensation
expense 116 104 116 104 (12)
Distributed earnings of
Financial Services 794 1,066 (794) (1,066) (13)
Provision (credit) for
deferred income taxes 20 (242) (81) 140 (61) (102)
Changes in assets and
liabilities:
Receivables related to
sales (123) (66) (1,129) (428) (1,252) (494) (14, 16)
Inventories (330) (423) (113) (103) (443) (526) (15)
Accounts payable and
accrued expenses 61 (646) (34) 69 (293) (140) (266) (717) (16)
Accrued income taxes
payable/receivable (99) (89) (20) (58) (119) (147)
Retirement benefits (359) (770) (8) (43) (367) (813)
Other (142) 123 71 182 (81) (39) (152) 266 (11, 12, 15)
Net cash provided by
operating activities 4,012 3,338 1,608 1,899 (2,370) (1,773) 3,250 3,464
Cash Flows from
Investing Activities
Collections of
receivables (excluding
receivables
related
to sales) 20,261 20,178 (339) (466) 19,922 19,712 (14)
Proceeds from maturities
and sales of marketable
securities 108 27 281 332 389 359
Proceeds from sales of
equipment on operating
leases 1,479 1,408 1,479 1,408
Cost of receivables
acquired (excluding
receivables
related to sales) (19,351) (19,189) 212 227 (19,139) (18,962) (14)
Acquisitions of
businesses, net of cash
acquired (455) (89) (455) (89)
Purchases of marketable
securities (42) (133) (319) (465) (361) (598)
Purchases of property
and equipment (714) (851) (2) (1) (716) (852)
Cost of equipment on
operating leases
acquired (2,086) (2,148) 153 139 (1,933) (2,009) (15)
Increase in investment
in Financial Services (5) 5 (17)
Increase in trade and
wholesale receivables (1,550) (807) 1,550 807 (14)
Collections of
receivables from
unconsolidated
affiliates 189 197 145 197 334
Collateral on
derivatives -- net 1 4 (64) 123 (63) 127
Other (72) (75) (73) (156) (145) (231)
Net cash used for
investing activities (1,179) (928) (1,227) (580) 1,581 707 (825) (801)
Cash Flows from
Financing Activities
Net proceeds (payments)
in short-term
borrowings (original
maturities three months
or less) 18 294 3,187 (2,354) 3,205 (2,060)
Change in intercompany
receivables/payables (735) (660) 735 660
Proceeds from borrowings
issued (original
maturities
greater
than three months) 430 2,188 4,943 8,519 5,373 10,707
Payments of borrowings
(original maturities
greater
than
three months) (262) (863) (8,076) (6,880) (8,338) (7,743)
Repurchases of common
stock (697) (1,136) (697) (1,136)
Capital investment from
Equipment Operations 5 (5) (17)
Dividends paid (1,316) (1,282) (794) (1,066) 794 1,066 (1,316) (1,282) (13)
Other (27) (25) (28) (18) (55) (43)
Net cash used for
financing activities (2,589) (1,484) (28) (1,139) 789 1,066 (1,828) (1,557)
Effect of Exchange Rate
Changes on Cash, Cash
Equivalents, and
Restricted Cash 22 96 (2) 12 20 108
Net Increase in Cash,
Cash Equivalents, and
Restricted
Cash 266 1,022 351 192 617 1,214
Cash, Cash Equivalents,
and Restricted Cash at
Beginning of Period 6,364 5,643 2,169 1,990 8,533 7,633
Cash, Cash Equivalents,
and Restricted Cash at
End of Period $ 6,630 $ 6,665 $ 2,520 $ 2,182 $ 9,150 $ 8,847
(11) Elimination of depreciation on leases related to inventory
transferred to equipment on operating leases.
(12) Reclassification of share-based compensation expense.
(13) Elimination of dividends from Financial Services to
the equipment operations, which are included in the
equipment operations operating activities.
(14) Primarily reclassification of receivables related
to the sale of equipment.
(15) Reclassification of direct lease agreements with retail
customers.
(16) Reclassification of sales incentive accruals on receivables
sold to Financial Services.
(17) Elimination of change in investment from equipment
operations to Financial Services.
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